Warren questions Walgreens sale, warns of potential impact on healthcare access (2025)

Business

Her concerns follow Sycamore Partners’ proposed $10 billion takeover of the retail pharmacy giant.

By Beth Treffeisen

April 29, 2025 | 1:22 PM

2 minutes to read

Sen. Elizabeth Warren is demanding answers from Sycamore Partners over its proposed $10 billion acquisition of Walgreens, warning the deal could threaten healthcare access for Massachusetts residents.

In a letter to the private equity firm Sycamore Partners on Tuesday, Warren listed a series of questions aimed at ensuring there won’t be a repeat of the Steward Health Care debacle and to prevent “pharmacy deserts” in the state.

Questions include:

• Does Sycamore plan to close any additional Walgreens stores in Massachusetts?
• Does Sycamore plan to sell the real estate from any Walgreens stores, including through sale-leaseback transactions?
• Does Sycamore plan on firing any Walgreens employees?

The senator says Sycamore’s planned Walgreens buyout relies heavily on debt, raising concerns it could push the company toward bankruptcy.

“These are deeply troubling conclusions, suggesting that yet another private equity firm might leverage a failing health care chain to turn a profit at the expense of Massachusetts’ patients, providers, and taxpayers,” Warren wrote.

In addition, the senator asks the company to commit to not accepting any dividends, bonuses, or payouts from Walgreens until the company starts to make a profit.

In her letter, Warren warns that private equity takeovers of healthcare providers often hurt workers and consumers by cutting jobs, closing locations, and limiting access to essential services.

Private equity takeovers can quickly drive up costs and reduce access, the letter said, as seen in Steward Health’s collapse, which led to the closure of two Massachusetts hospitals.

Sycamore Partners had no immediate comment.

Walgreens struggles

On March 6, Walgreens Boots Alliance (Walgreens) agreed to be acquired by Sycamore Partners (Sycamore), a private equity firm specializing in retail, consumer, and distribution-related investments.

The acquisition comes as Walgreens has been struggling to stay afloat. In October, the company announced it would close 1,200 locations, including nine in Massachusetts, as it sought to revitalize its hurting business.

Many of those closures, Warren states, were in vulnerable communities, leaving thousands of residents without access to reliable pharmacies.

“Far too often, private equity buyouts ruin already-struggling companies and produce devastating consequences for workers and communities,” Warren wrote.

Walgreens blamed the increase in regulatory and reimbursement pressures for its struggles to cover the costs associated with rent, staffing, and supply needs.

Walgreens reported a net loss of $8.6 billion for the 2024 fiscal year, nearly triple the loss from the previous year, with only 70% of the company’s 8,500 U.S. stores being profitable at the end of last year.

“We are focused on making healthcare delivery more effective, convenient, and affordable as we navigate the challenges of a rapidly evolving pharmacy industry and an increasingly complex and competitive retail landscape,” said Tim Wentworth, CEO of Walgreens Boots Alliance, in a release.

Sycamore Partners plans to complete the acquisition by the end of 2025.

After completion, Walgreens will no longer be listed on the Nasdaq Stock Market and will become a private company.

Walgreens Boots Alliance employs over 300,000 people worldwide, with 12,500 locations across the U.S., Europe, and Latin America. It includes consumer brands such as Walgreens, Boots, Duane Reade, No7, and Benavides.